New COVID-19 reporting requirements of the European Banking Authority: BearingPoint RegTech develops a rapidly deployable solution

Since the end of June 2020, CRR credit institutions and development banks have been required to submit reports

Frankfurt, July 22, 2020 – In response to the COVID-19 pandemic, the European Banking Authority (EBA) has extended its reporting requirements at short notice and published new guidelines and annexes on June 2, 2020. The guidelines and annexes which consist of eleven reporting templates and three disclosure templates include requirements on:

• Monitoring the use of payment moratoria and the evaluation of the credit quality of exposures subject to payment moratoria development of the credit quality of subject to payment moratoria (according to EBA/GL/2020/02)
• New loans subject to specific public guarantees established to mitigate the effects of the COVID-19 crisis
• Other forbearance measures applied in response to the COVID 19 crisis.

The new reports are designed to assess the stability of financial institutions and to provide both supervisors and the public with an accurate assessment of the risk profile of institutions and the quality of assets on their balance sheets.

The reports, in accordance with the EBA guidelines, must be submitted by all CRR credit institutions at both individual institution and group level in compliance with the waiver according to Article 7 CRR. Submissions by development banks are also required.

Reporting is required quarterly, and the associated disclosure must be reported semi-annually (subject to national proportionality options). The reporting and disclosure period is limited to 18 months and, in accordance with EBA requirements, begins on June 30, 2020.

The reports must be submitted in XBRL format. The corresponding taxonomy (Data Point Model Version 2.10 (Phase 2)) for the new reporting requirements was provided by the EBA on July 10, 2020 and includes (cross-module) validation rules.

The proportionality option mentioned above allows national regulators to adjust both the reporting frequency and the scope of reporting.

For German CRR credit institutions and development banks particularly, COVID-19 reporting so far includes only four reporting forms that have to be submitted monthly, and one reporting form that has to be submitted quarterly. The option to not fully adopt the EBA guidelines has been chosen. The first report is scheduled for August 2020 with a submission by the end of September 2020. The subsequent reports for June 2020 and July 2020 also have to be submitted by the end of September 2020. Other countries such as Ireland, Luxembourg, the Netherlands, Romania, and Sweden are expected to fully adopt the EBA guidelines (without any greater deviations).

BearingPoint RegTech has developed a "COVID-19 Reporting" solution for the new reporting requirements at short notice. The solution can be used by CRR credit institutions and development banks that use BearingPoint RegTech's Abacus360 Banking software. The solution can also be provided for other institutions via BearingPoint's RegTech Factory.